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Packaging Corporation Of America (PKG)

- NYSE
  • Oct. 25, 2013, 12:43 PM
    • Packaging Corporation of America (PKG +0.7%) completes the acquisition of Boise (BZ +0.2%). All BZ shares not purchased in the tender offer have been converted into the right to receive $12.55/share in cash.
    • 6.6% Boise shareholder Carlson Capital had agitated for a divestment of the paper ops and believed shares could be worth as much as $17/share.
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  • Sep. 16, 2013, 7:31 AM
    • Packaging Corporation of America (PKG) agrees to acquire Boise (BZ) for $12.55 per share in cash, or nearly $2B. The sale is expected to close in Q4, subject to certain customary conditions and regulatory approval.
    • PCA's containerboard capacity will increase to 3.7M tons from the current 2.6M and PCA will now have a market presence in the Pacific Northwest.
    • Synergies are expected to generate pre-tax benefits of $105M, to be fully realized within 3 years of the closing, according to PCA management.
    • Boise shareholders are getting 5x LTM EBITDA for their stock.
    • BZ closed at $9.96 Friday evening, making the purchase price a 26% premium.
    • Press release.
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  • Jun. 7, 2011, 2:52 PM
    International Paper (IP +1.1%) and Temple-Inland (TIN +42.3%) are in focus after IP's $30.60/share bid was rejected despite being a 46% premium to Monday's closing price. Other packaging and paper stocks rally on calls from bullish analysts that the industry is heading for consolidation: PKG +6.9%, WY +6.2%, BZ +5.6%, KS +4.3%, RKT +3.1%.
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Company Description
Packaging Corporation of America is a producer of container board and corrugated products in the United States. The Company also produces multi-color boxes and displays, as well as meat boxes and wax-coated boxes for the agricultural industry.